SACRAMENTO, Calif., Jan. 03 /CSRwire/ – Today, Patagonia became the first company in California to elect benefit corporation status. Patagonia founder Yvon Chouinard led the largest group of businesses to register on the legislation’s first effective date among the 7 states that have passed benefit corporation laws. The dozen CEOs filed their documents at 9:30 a.m. as soon as the offices of the California Secretary of State opened. Scores of other businesses have expressed interest in registering in the next few months.

“After the ‘year of the protester’, it’s inspiring that a group of business leaders are taking action to create a positive alternative,” said Jay Coen Gilbert, co founder of B Lab, a non-profit organization that supported the legislation.

Benefit corporations are a new kind of corporation legally required to: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) redefine fiduciary duty to require consideration of the interests of workers, community and the environment; and 3) publicly report annually on its overall social and environmental performance using a comprehensive, credible, independent, and transparent third party standard. Current law requires corporations to prioritize the financial interests of shareholders over the interests of workers, communities, and the environment.

“Patagonia is trying to build a company that could last 100 years,” said Patagonia founder Yvon Chouinard. “Benefit corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards put in place by founding entrepreneurs.”

“It is safe to declare a successful end to the ‘beta test’ phase of socially responsible business,” said Mike Hannigan, President and Co-Founder of Give Something Back Office Supplies. “we have been giving customers their money’s worth and a whole lot more for more than 20 successful years. This important legal framework marks another giant step of mission driven business towards the mainstream.”

“We rushed to be in Sacramento on January 3,” said Sandra Stewart, principal of Thinkshift Communications. “It’s what people are demanding. It’s not just a trend — ingraining values into a legal corporate structure is key to a sustainable future.”

New York, New Jersey, Virginia, and Hawaii passed similar legislation in 2011, joining Vermont and Maryland who did so in spring 2010. Benefit corporation legislation has also been introduced in Michigan, Pennsylvania, North Carolina, and the District of Columbia. Legislation has enjoyed strong bi-partisan support in every state.

“This is California at its best, showing there is a way to create jobs and grow the economy while raising the bar for social and environmental responsibility,” said Assemblymember Jared Huffman (D-San Rafael). “With this new law, we are attracting new socially-conscious companies, investors and consumers – we’re sending a strong message that California is open for this emerging form of business.”

The California bill had significant business support, including that of more than 200 individual California businesses, 12 business associations, including the Silicon Valley Leadership Group and the U.S. Green Building Council, standards organizations like GreenSeal, and more than 3,000 California citizens through the advocacy efforts of Care2.com, all interested in creating better choices for the growing number of entrepreneurs and investors who seek to create businesses that create both social and shareholder value.

The bill was sponsored by the American Sustainable Business Council, New Voice of Business, and B Lab; the effort to pass the bill was led by a legal working group co-chaired by John Montgomery from Montgomery & Hansen LLP, Donald Simon from Wendel Rosen Black & Dean LLP, and Jonathan Storper from Hanson Bridgett LLP; and the citizen advocacy campaign was led by Care2.com.

For additional background on benefit corporations, including national and local legislative updates, see www.benefitcorp.net.

B Lab: is a nonprofit organization dedicated to using the power of business to solve social and environmental problems. B Lab drives systemic change through three interrelated initiatives: 1) building a community of Certified B Corporations to make it easier for all of us to tell the difference between “good companies” and just good marketing; 2) accelerating the growth of the impact investing asset class through use of B Lab’s GIIRS impact rating system by institutional investors; and 3) promoting supportive public policies, including creation of a new corporate form and tax, procurement, and investment incentives for sustainable business. For more information, check www.bcorporation.net.

American Sustainable Business Council:is a growing coalition of business networks and businesses committed to advancing a new vision, framework and policies to support a vibrant, equitable and sustainable economy. The Council brings the business perspective, experience and strength to stimulate our economy, benefit our communities, and preserve our environment. Today, the organizations that have joined in this partnership represent over 65,000 businesses and social enterprises and more than 150,000 entrepreneurs, owners, executives, investors and business professionals and other individuals. www.asbcouncil.org

New Voice of Business: is a non-profit organization that promotes economic, social and environmental sustainability in the United States. Its mission is to inform, engage, and mobilize an influential network of business people – a unified, new voice of business to advocate for a sustainable economy and encourage triple bottom line business practices. New Voice advocates for policy change that makes it easier and more profitable for business to operate sustainably. For more information please visit: www.newvoiceofbusiness.org.

Care2: With more than 17 million members and over 700 nonprofit partners worldwide, Care2 is the largest online community that empowers millions of individuals to lead a healthy, sustainable lifestyle and support important causes. Care2 is a B Corporation, or social enterprise, that generates revenues by connecting individuals with nonprofits and business that are making the world a better place. Care2 has worked with B Lab to provide thousands of signatures to advocate for Benefit Corporation legislation passed in California and New York. Founded in 1998, Care2 has collected over 80 million signatures on petitions featuring timely and important issues. Please visit the Care2 community at www.care2.com.

Assembly member Jared Huffman (D-San Rafael): represents the 6th Assembly District, which encompasses southern Sonoma County and all of Marin County. First elected in 2006, Huffman chairs the Assembly Water, Parks and Wildlife Committee and also serves as Co-Chair of the Legislative Environmental Caucus.

]]>http://www.care2.com/care2blog/patagonia-registers-as-first-california-benefit-corporation.html/feed0NY Law Creates New Kind of Corporationhttp://www.care2.com/care2blog/ny-law-creates-new-kind-of-corporation.html
http://www.care2.com/care2blog/ny-law-creates-new-kind-of-corporation.html#commentsThu, 15 Dec 2011 03:45:29 +0000http://www.care2.com/care2blog/?p=463Spurs Investment to Create High Quality Jobs and Use Business to Solve Social Problems

ALBANY, N.Y., Dec. 13 /CSRwire/ – At midnight last night a law was enacted creating benefit corporations, a new class of corporations required to create benefit for society as well as shareholders. Unlike traditional corporations, benefit corporations are required to create a material positive impact on society and the environment; consider how decisions affect employees, community and the environment; and publicly report their social and environmental performance using established third-party standards.

Continuing a national trend of strong bi-partisan support for benefit corporation legislation, the New York bill (S79-A and A4692-A), sponsored by Senators Daniel Squadron (D-25) and Assembly Speaker Sheldon Silver (D-64) and co-sponsored by William Larkin (R, C-39), passed both houses of the New York legislature unanimously.

“Political leaders like Speaker Silver, and Senators Squadron and Larkin understand that New York needs to attract businesses whose core purpose is to create more high quality jobs and to improve the quality of life in communities across the state,” said Andrew Kassoy, co founder of B Lab, the nonprofit organization that drafted the model legislation. “The benefit corporation bill will unlock billions of dollars in impact investment capital and enable entrepreneurs across the state to start businesses that solve some of society’s greatest challenges.”

“Benefit corporations will mean New York is open for business in an important new way. Benefit corporations will unlock billions of dollars in new investments in New York while empowering companies to do well and do good,” said Senator Squadron. “By offering this opportunity to entrepreneurs and investors, New York will bring new businesses into the state, new investors into the market and a new socially-minded approach for our entrepreneurs.”

“By bringing benefit corporations to New York, we are showing that profit and social responsibility are not mutually exclusive,” said Speaker Silver. “This law will continue our efforts to strengthen and diversify our economy while ensuring that New York remains a national leader in progressive policies that help our environment, protect consumers and bolster the rights of working men and women.”

“I am very happy to see that this bill has finally become law. It will enable businesses to grow without the infringement of state government, and will help New York become a more business friendly state,” added Senator Larkin.

The new law addresses a long time concern among entrepreneurs who need to raise growth capital but fear losing control of the social or environmental mission of their business. These entrepreneurs and other shareholders of benefit corporations now have additional rights to hold directors accountable for failure to create a material positive impact on society, to consider the impact of decisions on employees, community, and the environment, or to inform the public about the company’s overall social and environmental impact as assessed against a credible, independent third party standard.

New York is the seventh state to pass benefit corporation legislation, joining Maryland, Vermont, New Jersey, Virginia, Hawaii, and most recently, California. The legislation has enjoyed broad bi-partisan support nationally, with a vote tally of 892 ayes and 62 nays, and the signatures of both Republican and Democratic governors. The New York bill had significant support from business (partial list below), including Eileen Fisher, City Light Capital, and UncommonGoods; and from more than 2,600 New York citizens, all interested in creating better choices for the growing number of entrepreneurs and investors who seek to create businesses that create both social and shareholder value.

“The passage of benefit corporation legislation is an important and much needed step forward to grow our New York state economy and create more jobs which can also provide greater social and environmental benefit,” says David Levine, co-founder of the American Sustainable Business Council whose members’ organizations represent over 100,000 businesses. “At a time when the country is looking for solutions to build the economy, New York is helping to lead the way with an innovative and sustainable business strategy.”

See below for list of supporters and individuals willing to comment on the legislation

B Lab: is a nonprofit organization dedicated to building a new sector of the economy that uses the power of business to solve social and environmental problems. B Lab drives systemic change through three interrelated initiatives: 1) building a community of Certified B Corporations to make it easier for all of us to tell the difference between “good companies” and just good marketing; 2) driving capital to impact investments through use of GIIRS Ratings and Analytics; and 3) advancing supportive public policies to accelerate growth of social entrepreneurship and impact investing. For more information, check www.bcorporation.net and www.benefitcorp.net.

American Sustainable Business Council:is a growing coalition network of business networks organizations and businesses committed to advancing a new vision, framework and policies to support a vibrant, equitable and sustainable economy. The Council brings the business perspective, experience and strength to stimulate our economy, benefit our communities, and preserve our environment. Today, the organizations that have joined in this partnership represent over 10065,000 businesses and social enterprises and more than 150,200,000 entrepreneurs, owners, executives, investors and business professionals and other individuals. For more information, check www.asbcouncil.org.

Care2: with more than 17 million members and over 700 nonprofit partners worldwide, Care2 is the largest online community that empowers millions of individuals to lead a healthy, sustainable lifestyle and support important causes. Care2 is a B Corporation, or social enterprise, that generates revenues by connecting individuals with nonprofits and business that are making the world a better place. Care2 has worked with B Lab to provide thousands of signatures to advocate for Benefit Corporation legislation passed in California and New York. Founded in 1998, Care2 has collected over 80 million signatures on petitions featuring timely and important issues. Please visit the Care2 community at http://www.care2.com.

Almost two years ago, Care2 became a B Corporation, joining a handful of other companies with the distinguished “B” certification.

Today, there are over 300 B Corporations – all have committed to a better way to do business. Each certified B Corporation has had to meet high standards of social and environmental performance and all are making a difference every day by strengthening local communities and protecting the environment.

We want to help get the word out, so starting this week we’re launching our participation in a new marketing campaign with B Lab, the good folks behind the B Corporation certification. You can read about some great fellow B Corps on ourTrailblazers for Good blog and you’ll be seeing some new ads on the Care2 site featuring B Corps we think you’ll like.

I believe business is one of the most powerful forces on the planet – and business that truly do good can be some of the most powerful forces to help create a more sustainable, just and healthy world. Companies that carry the B Corp logo are working to achieve this same vision.

Here are a few B Corporations working to make a difference:

Barkwheats wants to change the way people think about dog biscuits and kibble. They are not only a B Corp, but also Fair Trade certified. 95% of the ingredients they use comes from local sources and the other 5% comes from other Fair Trade sources. The packaging they use is also 100% compostable.

The team at Recyclebank has built a business on rewarding people for doing good. By placing microchips in recycle bins, they are able to track and reward points to households that recycle. The points can be used at over 2,000 different businesses.

Give Something Back is an office supply company that we use at Care2 since they offer green and recycled products and also believe in giving back to the community.

]]>http://www.care2.com/care2blog/b-corporations-a-better-way-to-do-business.html/feed0Why Care2 Chose to Become a B Corporationhttp://www.care2.com/care2blog/why-care2-chose-to-become-a-b-corporation.html
http://www.care2.com/care2blog/why-care2-chose-to-become-a-b-corporation.html#commentsMon, 29 Jun 2009 02:36:56 +0000http://www.care2.com/care2blog/?p=102When I started Care2 over 11 years ago, my goal was literally to create an engine for good – an organization whose output was “goodness” - so that the more good it did for the world, the more income it would make.. and that, in turn, would pay for a bigger/more powerful engine for doing more good – in a truly virtuous cycle.

I’m pleased to report, so far so good! With 11 million members, Care2 is now the largest online community for good, we partner with over 400 nonprofit organizations, and we employee about 50 people plus a large and growing blogger network. As more people use the Care2 platform to make the world a better place, the more our sponsors pay, and the more content and services we’re able to add.

At the time of incorporation, I chose the structure of a “C Corporation” – the standard, multi-shareholder corporation. There were many benefits to this model: I could get investors, attract and motivate the best employees with stock options, and have the freedom to operate and refine the model free from restrictive grants and funding cycles that most nonprofits face. From my perspective, the for-profit model had nothing to do with greed or ethics – it was simply the best vehicle for doing good, given the platform we were building.

In fact, the for-profit model was attractive to me for another reason: I strongly believe that Business needs to be a driving force for good if we’re to get the world out of the mess we’re in. Business is an incredibly powerful force – so if we can harness that power for good, we can change the world. I wanted Care2 to be the shining light to show others it’s possible to “do well while doing good.”

To date, there are painfully few examples of financially successful social enterprises… which means investors are (generally rightfully) wary of investing in startups that aim to make a positive social and environmental impact. I was fortunate enough to find a few investors that believed in me, but most folks still believe they should invest their money for profit, and *donate* their money for good – and they don’t believe it’s possible to do well while doing good. And that’s a shame.

The problem with being a C Corporation though, is that a lot of people inherently distrust corporations. “You’re for profit? Then you’re not for real. Clearly you’re doing something devious” is the message I’ve been told directly or indirectly time and time again. Basically, “Nonprofits good. For-profits bad”. That’s rubbish, and old-school thinking, but I know it’s still a wide-spread misperception.

Of course, the only real difference between a for-profit and nonprofit organization is a tax code – there are plenty of nonprofits that aren’t exactly making the world a better place, and there are some for-profit companies that are. I was out to prove the doubters wrong, and show the world that a C Corporation really could do good… but even I didn’t like the label of being a “for profit” company. It just sounds a bit crass, and it’s too simplistic. Sure, to be a sustainable force for good we need to generate profits, but Care2 is about so much more than that – after all, we don’t put profits above all else – we do well because we treat our employees, customers, partners and other stakeholders well. Which is why I was attracted to the concept of the “B Corporation.”

B Corporations are a new kind of company which use the power of business to solve social and environmental problems. Think: “For Benefit” Corporation. To be eligible for B Corp status, a company must pass a social and environmental screen, and modify its articles of incorporation. Essentially, the B Corp structure gives companies the right to consider all their key stakeholders if the company is purchased. In contrast, a standard C Corporation has a legal obligation to sell to the highest bidder – even if that is to the detriment of employees, local service providers, the environment, or other stakeholders. I’m confident no company would ever buy Care2 if they weren’t committed to our mission (they’d have to be crazy not to, because if they violate our mission our members would leave, and there would be no value left). That said, if Care2 were to be acquired someday, I want to be able to consider more than just the share price, and I’m pleased to say our Board of Directors has voted unanimously to adopt the B Corp principles.

When we became a B-Corp last December, there were just over a hundred B Corporations. Today, there are 190, representing $1 billion in sales in 31 industries. B Corporations include an impressive list of socially responsible leaders: Seventh Generation, Method Products, CleanFish, ShoreBank, GoodCapital, BetterWorldBooks, Numi Organic Tea, New Leaf Paper, and many other social enterprise pioneers.